Battle for EU funds?
16/04/2014 00:00
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A new law that insures the financial deposits of crediting-saving
companies has caused a clash between these companies and the Deposit
Association. The conflict is about the quantity that is insured in case
of bankruptcy, which for banks is 2.5 million ALL while for loan
companies is just 1 million.
“The reduced coverage level with the new draft law has created the perception that there are distinction between rural and urban residents”, declared Zana Konini, Chairman of the Albanian Saving and Credit Union.
“If we would foresee a 2.5 million ALL coverage for Saving and Crediting companies, this would bring a 98% coverage of all deposits, and a coverage of 70% of deposits in total. This is impossible”, explained the Deposit Association representative.
Saving and Crediting Associations collect deposits of farmers and distribute them as agricultural loan. But is the Deposit Agency, which depends from Bank of Albania, making a discrimination with their case?
“When the banking system covers 2.5 million and another subject covers less, the intuitive tendency would be over 2.5 million”, declared the Minister of Finances, Shkelqim Cani.
Meanwhile, Erjon Brace made public another fact that according to him is suspicious.
“When the law for insuring deposits has decided a deadline for the inclusion of saving-crediting companies in the insurance scheme, where does the agency find the power to postpone with six months the inclusion of these companies in the scheme”, Brace asked.
Top Channel has secured a decision through which the agency postpones the entering in act of this law by leaving the deposits of farmers uninsured. According to the agency, the document says that regardless of the legal obligation, the saving-crediting companies have not fulfilled the conditions for getting insured at the Deposit Insurance Agency, by failing to provide the necessary documentation and by passing the legal deadlines.
But this argument has not convinced Parliament Members from the majority and the opposition.
“It seems that even the 17% of the market that this company has insured with sacrifices, now will have to be removed”, protested the Socialist Party Parliament Member, Arben Cuko.
But what stands behind this battle? Confidential sources from saving-crediting companies say that the battle is related to the canalization of the European Union fund for the agricultural sector. A fight that has involved not only private subjects, but also public institutions that regulate the financial market.
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